by
Mzoxolo Wilberforce Kapa
Thesis presented in partial fulfilment of the requirements for the degree Masters in Public Administration in the faculty of Management Science
at Stellenbosch University
Supervisor: Mr Zwelinzima Ndevu
i DECLARATION
By submitting this thesis electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated), that reproduction and publication thereof by Stellenbosch University will not infringe any third party right and that I have not previously in its entirety or in part submitted it for obtaining any qualification.
Date: December 2015
Copyright © 2015 Stellenbosch University All rights reserved
ABSTRACT
South Africa, as a water-scarce country is faced with shortage of water managers and engineers. The situation is due to employee turnover caused by competition; employee migration to cite a few reasons.
The shortage results in poor wastewater works’ management; the contamination of secondary sources of water like dams and rivers. Other results of the shortage are the deterioration of community health, water infrastructure and the work overload experienced by the overstretched managers still in the system.
The reduction of the reasons for employee turnover in the wastewater sector would ensure the dignity and rights of citizens are restored and respected respectively and the environment properly maintained. The retention of Plant managers in charge of the Wastewater Treatment Works (WWTW) in the country, and more specifically in the East Rand Water Care, a subsidiary of the Ekurhuleni Metropolitan Municipality (EMM), cannot be postponed any further as it is imperative to avoid further losses of key employees.
The study sought to assess the reasons for the high turnover of young Plant managers within the East Rand Water Care; to highlight the negative effects of the problem; to review the organization’s existing policies meant to curtail the problem and to propose measures to curb the challenge. A vital distinction to clarify is that the research looks at voluntary turnover, not involuntary turnover.
The case study, content and secondary data analyses were the designs used to conduct the research with the East Rand Water Care as the organization to be studied in order to discover the degree to which the wastewater sector utilises employee retention strategies to control employee turnover. Secondary qualitative and quantitative data collection and analysis methods, and primary data in the form of structured interviews, were used to gather data which were interpreted to inform the research results.
A total of seven, inclusive of personal and organizational, reasons were found to be behind the voluntary employee turnover rate. Professional perceptions were found not to be among the reasons for employee turnover within the organization. The most common reasons for employee turnover, the research found were:
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Economic reasons; Poaching;
Lack of higher incentives; Communication and Family.
The most unique reason found, concerned the health risks associated with the wastewater industry.
Weakened knowledge capture, re-use and management; financial costs and high absenteeism were some of the negative effects caused by the turnover of young Plant managers. Most importantly, the poor achievement in Green Drop assessments is another negative effect brought about employee turnover. Green Drop assessments are an annual initiative of the Department of Water and Sanitation that assess the quality of the final effluent of municipal wastewater and award certificates for those wastewater works that achieve the expected levels of high quality. The research also found that all the policies meant to assist internal organizational employee retention were not succeeding in achieving the retention of Plant managers. The reason for their failure was that they were not primarily meant for employee retention.
The results provide an indication that there is a need for a concerted effort by the organization to put in place measures that would lessen the quits of valuable employees like:
Retention policy development and implementation which should be applied and monitored to ensure the compliance with the government plan of a healthy environment. If the retention of such employees is not prioritized, the municipal obligation of providing a healthy environment to the citizens by the Ekurhuleni Metropolitan Municipality through its subsidiary would be compromised.
OPSOMMING
Werknemeromset lei daartoe dat Suid-Afrika as ‘n waterskaars land ‘n tekort aan waterbestuurders en wateringenieurs ervaar. Twee van die redes hiervoor is kompetisie vir hulle dienste en werknemermigrasie. Die tekort veroorsaak dat afvalwaterwerke agteruitgaan; sekondêre waterbronne soos riviere en damme besoedel word; gemeenskapsgesondheid en waterinfrastruktuur agteruitgaan; en ooreiste bestuurders wat nog in die stelsel werksaam is, oorlaai word. Suksesvolle uitskakeling van die redes vir werknemeromset in die sektor sal verseker dat die waardigheid en regte van burgers onderskeidelik herstel en gerespekteer word en dat die omgewing behoorlik in stand gehou word. Die behoud van aanlegbestuurders in beheer van die rioolsuiweringswerke (RSW) in die land, en meer spesifiek in die Ekurhuleni Metropolitaanse Munisipaliteit (EMM), kan dus geensins verder uitgestel word nie, daar dit noodsaaklik is om verdere verliese te voorkom.
Die studie het ten doel gehad om die redes vir die hoë omset van jong aanlegbestuurders in die Oos-Rand Watersorgorganisasie te evalueer; die negatiewe gevolge van die probleem uit te lig; die organisasie se bestaande beleid wat bedoel is om die probleem te bekamp in oorsig te neem, en om maatreëls voor te stel om die probleem aan te spreek. ‘n Belangrike onderskeid wat uitgeklaar moet word, is dat die navorsing vrywillige omset ondersoek het en onwillekeurige omset uitgesluit het.
Die benadering wat gevolg is, was dié van ‘n gevallestudie van die Oos-Rand se watersorgorganisasie om te bepaal tot watter mate die afvalwatersektor se strategieë vir die behoud van werknemers in werking gestel word om werknemeromset te oorkom. Sekondêre kwalitatiewe en kwantitatiewe data-insameling en ontledingsmetodes insluitend gestruktureerde onderhoude is onderneem om inligting te bekom en te interpreteer om die navorsingsresultate in te lig.
Sewe redes van persoonlike en organisatoriese aard is vir die vrywillige werknemer uitvalsyfer gevind. Daar was geen aanduiding van professionele persepsies onder die redes vir die werknemeromset binne die organisasie nie. Die mees algemene redes vir werknemeromset was ‘n lae gaad van identifikasie met die afvalwateromgewing; ekonomiese redes; wegrokkeling; gebrek aan hoër aansporings; onvoldoende kommunikasie; en druk van familie. Gesondheidsrisiko's wat verband hou met die afvalwateraanleg is geïdentifiseer as die mees
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unieke rede vir werknemeromset. Verswakte kennisvaslegging, hergebruik en bestuur; swak prestasie met betrekking tot Green Drop assesserings; finansiële koste; en verhoogde afwesigheid was 'n paar van die negatiewe gevolge van die omsetkoers van jong aanlegbestuurders.
Die resultate gee 'n aanduiding dat daar 'n behoefte bestaan vir 'n doelgerigte poging in die organisasie om maatreëls in te stel wat sal verhoed dat waardevolle werknemers bedank. Die ontwikkeling van 'n beleid om werknemers te behou en die implementering daarvan moet toegepas en gemonitor word om nakoming van die regering se visie vir 'n gesonde omgewing te verseker. Die munisipale verpligting om 'n gesonde omgewing vir burgers van die Ekurhuleni Metropolitaanse Munisipaliteit deur die rioolsuiweringswerke te bewerkstellig, sal benadeel word indien die behoud van bogenoemde werknemers nie 'n prioriteit word nie.
ACKNOWLEDGEMENTS
I acknowledge first, the Almighty who has afforded me the opportunity to start and finish this project. Through his counsel I have been able to achieve important milestones in life.
Special thanks goes to the late Jessie Kapa, who did more than was expected of her role, and became a true mother to me.
Gratitude goes to my family, my wife, Angel and children for their sacrifice and providing support from the onset.
Last but not least, I wish to appreciate the support and motivation by my supervisor, Mr Z. Ndevu provided during the course of completing this research.
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TABLE OF CONTENTS
Hausknecht, J.P., Trevor, C.O. & Howard, M.J. 2009. Unit-level voluntary turnover rates and customer service quality: Implications of group cohesiveness, newcomer concentration, and
size. Journal of Applied Psychology, 94(4), 1068-1075. ... 96
CHAPTER 1: INTRODUCTION AND BACKGROUND Content Page number 1.1 General Introduction …..………...1
1.2 Rationale of the Study ………...3
1.3 Research Problem and Objectives ………...6
1.4 Research Logic ………...6
1.5 Research Process...………...7
1.6 Limitations of the research ……….8
1.7 Time Frame ……….….8
1.8 Chapter Summary ………...9
CHAPTER 2: LITERATURE REVIEW 2.1 Introduction ...10
2.2 Historical background of employee turnover ……...10
2. 3 Understanding employee turnover ....……...11
2.3.1 Voluntary turnover defined ………...………12
2.3.2 Classification of voluntary turnover...………..12
2.3.2.1 Turnover relating to control…..…... 12
2.3.2.2 Turnover relating to destination...13
2.3.2.3 Turnover relating to functionality...13
2.3.3 Turnover models ...14
2.3.3.1 The unfolding model …...14
2.3.3.2 The motivational model ……….………..17
2.3.3.3 The economic model ……….………...…. 18
2.4.1 Demographic factors...…………...19
2.4.1.1 Personal reasons ………....19
2.4.1.2 Work-related reasons.………..21
2.4.2 Professional perceptions ...25
2.4.2.1 Affective commitment (AC) ...25
2.4.2.2 Normative commitment (NC) ...26
2.4.2.3 Continuance commitment (CC) ... 26
2.4.3 Organisational conditions ...27
2.4.3.1 Fairness ………..……… 27
2.4.3.2 Compensation and failure to meet expectation ……….……....27
2.4.3.3 Organisational trends ……….…...28
2.4.3.4 Competition ...…...28
2.4.3.5 Extrinsic rewards..……….………..29
2.4.3.6 Leadership style and team dynamics ……….……….…29
2.4.3.7 Imposition of a quantitative approach in managing employees …………..31
2.4.3.8 Human resources practices and adverse working conditions ……….31
2.4.3.9 Development opportunities ………..……….31
2.4.3.10 Mismanaging organisational change ………32
2.4.3.11 Organisational environment and economics ……….…..32
2.4.3.12 Organisational Instability ... 33
2.4.3.13 Organisational inefficiency…... 33
2.4.3.14 Communication…... 34
2.5 Wastewater sector-related reasons...34
2.6 Negative effects of employee turnover in the wastewater sector.………...37
2.6.1 Disruptions ………...37
2.6.2 Inhibited internal operating culture ……….…... 38
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2.6.4 Quantifiable and unquantifiable costs and / or losses ……….………... 39
2.6.5 Shallow candidate pools ………... 41
2.6.6 Mismanagement of wastewater works ……….………..….. 41
2.7 Curbing employee turnover in the wastewater sector... 42
2.7.1 Valued employees ...43
2.7.2 Nurturing employees ...44
2.7.2.1 Job embeddedness ...46
2.7.3 Employee support ...48
2.7.4 Human resources management and development measures ... 50
2.8 Chapter summary ...53
CHAPTER 3: LEGISLATIVE FRAMEWORK 3.1 Introduction ……….55
3.2 International Policy and Perspective ………..………55
3.3 The Constitution of the Republic of South Africa Act 108 of 1996…………..57
3.3.1 Environment ………57
3.3.2 Health care, food, water and social security ………..58
3.4 Local Government Municipal Systems Act 32 of 2000 ………...……….58
3.5 Basic Conditions of Employment Amendment Act 11 of 2002 …………...…60
3.5.1 Family responsibility leave...………...…..60
3.5.2 Maternity leave ………..60
3.6 The Labour Relations Amendment Act 12 of 2002 ………..…………60
3.7 Human Resources Development Strategy (HRD-SA) 2010-2030 ……….…61
3.8 National Development Plan (2011)..………..……….62
3.9 Energy and Water Services Sector Skills Plan (2011)...……….……….62
3.10 Water Services Amendment Act 2 of 2012 ……….63
3.11 Employment Equity Amendment Act 47 of 2013 ………..…….…63 3.12 National Human Resources Management and Development for
Local Government (2013) ……….…....63
3.2 ERWAT’s Employee Retention Policies and Strategies...……….64
3.3 Chapter summary ………..65
CHAPTER 4: FINDINGS OF THE RESEARCH 4.1 Introduction ………..……… 67
4.2 Methodology ...…... 67
4.2.1 Secondary data collection ……….……….67
4.2.2 Structured interviews ……….……….68
4.3 Data Analysis ………...…….68
4.3.1 Qualitative and quantitative data analysis ………..……… 68
4.3.2 Sampling techniques ……….……… 69
4.4 Findings of the study ………..…... 70
4.4.1 Findings on the most common and unique reasons for turnover …………71
4.4.2 Findings on effects resulting from employee turnover ………...….. 75
4.4.3 Findings on ERWAT’s internal employee retention strategies …………....79
4.5 Common themes between the literature review and findings …...81
4.5.1 Health risks ………..………82
4.5.2 Low identification with environment ………..…...82
4.5.3 Economic situation ……….……….82
4.5.4 Employee poaching ……….…83
4.5.5 Unmet expectations ………83
4.5.6 Communication ……….…...83
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4.5.8 Costs ……….….84
4.5.9 Inefficiency and underperformance ……….….84
4.5.10 Employee retention strategies ……….…………...84
4.6 Chapter summary...….………..………. 84
CHAPTER 5: SUMMARY, RECOMMENDATIONS AND CONCLUSION 5.1 Introduction ………..…………86
5.2 Interpretation of results ………..………86
5.3 Future research ……….…….…87
5.4 Recommendations ……….…87
5.4.1 Recommendations regarding the most common and unique reasons for turnover ………...……….….….…87
5.4.2 Recommendations regarding the effects of employee turnover………….89
5.4.3 Recommendations regarding ERWAT’s employee retention strategies...90
5.4.4 Recommendations regarding possible mechanisms to reduce turnover..91
5.5 Conclusion………….………....….91
REFERENCES……….…….94
LIST OF TABLES
Table 1.1: Time frame for conducting the study……….8
LIST OF FIGURES
Figure 1.1: Operations demographics……….2 Figure 2.1: Fortran-style flow diagram showing the unfolding model………...16 Figure 2.2: Motivational model of turnover……….18 Figure 4.1: Summary of ERWAT employee turnover results for 2011 & 2012...75 Figure 4.2: Comparative analysis of provincial performance...………...77
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CHAPTER 1: INTRODUCTION AND
BACKGROUND
1.1 GENERAL INTRODUCTION
The East Rand Water Care (ERWAT) is a Section 21 company that employs about six hundred employees in its wastewater operations and support services. The company is an entity owned by the Ekurhuleni Metropolitan Municipality. ERWAT provides the means by which the municipality endeavours to meet its obligations towards the community. As indicated by Scott (2005: 173), municipalities should give priority to the basic needs of the community by providing universal access to essential services. The services should be reasonably priced for all and they should be provided in a sustainable manner (Scott, 2005: 173). ERWAT is a national leader in wastewater treatment innovation and technology.
The organisation fulfils its function by operating nineteen wastewater treatment plants in the Ekurhuleni Metropolitan Municipality. The wastewater is gathered in the treatment plants, purified by adding chemicals like chlorine to ensure that the degree of its purity meets the specifications set out by the Department of Water and Sanitation. The treatment of wastewater is done to ensure that the final effluent released into rivers and streams meets environmental and municipal bylaws.
After having been released in streams and rivers, the water is collected in catchment areas and treated as potable water for human consumption, agriculture and other forms of economic activities. This, according to Scott (2005: 177), is done to promote a safe and healthy environment for the community by ensuring that the water when discharged from the treatment plants is not detrimental to small organisms that live in the rivers and not harmful to people who live around the river banks.
The core department within the ERWAT entity is the Operations Department, which is the main driver in the pursuit of the attainment of the entity’s mission and vision.
The ERWAT Human Resources Information Management System (HRIMS) reflects the average age of the company’s employees working in the core department as thirty-nine years. The system further indicates that the core department comprises six percent professional employees who have acquired qualifications in water utilisation and chemical engineering occupying positions at managerial and supervisory level as shown in Figure 1.1. Fifteen percent of the department is made up of water equipment operators, famously known as “operators”, who mostly possess a grade nine or Adult Basic Education and Training (ABET) level four certificate and a year’s technical certificate in Water and Wastewater Treatment Process Operations. The last seventy nine percent are general workers who either cannot read and write or have some level of education that does not exceed the General Education and Training Band (GET). The GET band, according to the Revised National Curriculum Statement, refers to school grades R to 9 (Republic of South Africa, 2002: 3).
Figure 1.1: Operations demographics (Human Resources Information System, 2012)
Plant Managers & Process Controllers 6% Operators Plant 15% General Workers 79% OPERATION'S DEPARTMENTAL DEMOGRAPHICS
3 1.2 RATIONALE FOR THE STUDY
Water is the essence of life and a scarce commodity (United Nations, 2010: 1). Safe drinking water and sanitation are essential to sustain life and health, and is basic to the dignity of all. It is estimated that about eight hundred and eighty-four million people in the world do not have access to clean and safe water (United Nations, 2010: 1). Water is also used in food production and without water the Millennium Development Goal of halving poverty by 2015 cannot be attained (Republic of South Africa, 2012: 1). According to the Organisation for Economic Cooperation and Development (OECD) rivers in the country, the Vaal River as an example, are increasingly contaminated by faecal material because of a lack of proper water management (OECD, 2011: 76).
South Africa is a water-stressed country and annually receives approximately five hundred millimetres of rainfall, which is sixty percent of the world average rainfall estimation of eight hundred millimetres (Mukheibir, 2007: 2). It is clear that there will be a water crisis in South Africa in the near future if the skills within the wastewater sector are not nurtured and retained because there would not be sufficient human resources to look after the water resources.
According to O’keefe (2013: 1), ecologists from Rhodes University, there are very few skilled water scientists, water engineers, water managers and water policy workers in South Africa. Experts in the field of water see the people who are in charge of the water services sector as very thinly stretched and that the country needs to focus on capacity building initiatives to produce more water managers and related professionals (O’keefe, 2013: 1).
The Proposed National Water Resource Strategy ll states that, given the fact that about forty to sixty percent of the country’s water resources are lost to either illegal connections or serious leakages in the ageing infrastructure, the country has to have qualified managers to try and stem the depletion of water resources (Republic of South Africa, 2012a: 3). In addition, while the mining industry is a significant contributor to the country’s Gross Domestic Product (GDP), contaminated mine water that has a direct impact on water users also impacts negatively on the water environment in South Africa (Ochieng, Seanego & Nkwonta, 2010: 3352). The reliable provision of water in sufficient quantities and
the necessary quality is a vital contributor to the growth of the economy and job creation (South Africa, 2012: 3).
The research setting, that is, the East Rand Water Care, has two types of Plant managers (East Rand Water, 2012: 27). The first type are those that are older and have been loyal to the company, who rely on a vast number of years of experience but mostly do not have the necessary qualifications to run wastewater treatment plants (East Rand Water, 2012: 27). The older and qualified engineers who had been managing the wastewater works before, currently work as Regional and District Managers and are office based doing the support function. The second type include younger plant managers and process controllers who are qualified to run wastewater treatment plants using today’s sophisticated technology (East Rand Water, 2012: 28). The younger group refers to workers between the ages of eighteen and four whereas the older group are thirty-five years and above (East Rand Water, 2012: 27).
A notable trend of resignations among the younger group has been observed on a regular basis in 2011 and 2012. In the two years under review, twenty percent and sixteen percent of young plant managers and process controllers respectively tendered their resignations (East Rand Water, 2012: 28). As a result, the operation of treatment plants was handed to inexperienced persons or completely new managers from time to time.
In the worst case scenario the authority is temporarily delegated, on a caretaker basis to a manager who will be supervising the wastewater plant without a manager. The same manager would be responsible for the wastewater works originally allocated to him or her, while the process to fill the vacancy is under way.
As a result of the resignations and absence of leadership in the treatment plants, sample results from the laboratory are not received on time. As a consequence, the advice to the personnel in the treatment plants is delayed regarding problems that exist and that hampers the timely implementation of the necessary interventions, to avert undesirable outcomes. As a result, communities, businesses like golf courses and the environment are affected. For communities, the risk for infection is raised; for business owners there is a potential loss of
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income through the withdrawal of clients; and within the environment organisms living in water die.
The turnover rate inhibits the attainment of organisational efficiency in processing wastewater in a manner that is healthy to the people of the municipality and friendly to the environment. In addition, the struggle to attain Green Drop certification is an indication of failing to implement best practices in the operation, control and management of wastewater treatment plants (East Rand Water, 2012: 27). The Green Drop programme, is an annual Department of Water and Sanitation initiative that assesses the quality of municipal water and awards certificates for those plants that achieve the expected levels of high quality. Scholarly articles have been written about the generic reasons for employee turnover and the impact that it has on organisations. Sector-specific research regarding the topic has also been undertaken extensively in the health and education sectors in society. Such studies focusing, for example, on healthcare workers were conducted by Hogh, Hoel and Caneiro (2011: 742) who found a strong relationship between bullying and turnover. Farber (2010: 2) also conducted extensive research on why great teachers quit and how the exodus of teachers could be arrested. Similar to the study conducted by Farber (2010:12), it is the aim of this research to suggest ways in which the exodus of Plant Managers could be eliminated in the wastewater sector.
While the health and education sectors have done research on employee turnover, as indicated above, this study was prompted by the fact that not much attention has been focused on research about this topic in a wastewater environment, even though it is a key player in economic growth (Republic of South Africa, 2012: 3).
The research therefore aimed to assess employee turnover in the wastewater sector, by investigating the East Rand Water Care as an example.
The main research problem identified was the high turnover of young professionals in the wastewater treatment operations and the implications of the turnover for the East Rand Water Care. The implications were identified by looking at the impact that the turnover has had on the treatment works.
The research aimed to achieve the following specific objectives:
To identify and assess the most common and unique reasons, within the sector, for the turnover among young professionals in the East Rand Water Care.
To report on the effects of employee turnover among young professionals within the East Rand Water Care.
To review the East Rand Water Care’s internal organisational employee retention strategies.
To recommend possible mechanisms that can implemented to reduce the high rate of turnover among young professionals in the East Rand Water Care.
1.4 RESEARCH LOGIC
The current study, as an empirical study, addressed a real life problem, namely the turnover rate of young professionals in the wastewater sector. The study aimed to describe phenomena in the life-worlds of the actors being studied and to generate inside viewpoints of the actors and their practices (Mouton, 2011:148). Existing data including both qualitative and quantitative data obtainable from reports and numerical figures contained in source documents were investigated in the study.
The design type employed in this study was the case study and a combination of content and secondary data analysis (Mouton, 2011: 143,144, 149). The limitations of the content analysis design concern how authentic the reports are.
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1.5 RESEARCH PROCESS
Qualitative and quantitative techniques, Mouton (2011: 166) were used to analyse the content of the exit interview sheets of employees, employment equity and annual reports including reports compiled by the human resources department. The techniques were used in order to analyse the reasons young professionals left the employ of the company. Further content that was studied comprised data contained in the annual Green Drop reports for the nineteen (19) treatment plants from the Department of Water and Sanitation for the years 2011 and 2012.
The internal employment equity reports data, contained in the EEA2 template, for the two years under review were studied. The study of the EEA 2 employment equity template was conducted to gather data on the employees whose services were terminated from some human resources database as a result of voluntary turnover.
Qualitative data was gathered using structured individual interviews conducted with the Human Resources Executive Manager, three District Managers and seven Regional Managers under whose supervision the wastewater treatment plants operate were followed. These were conducted individually, with the managers being given a list of questions to respond to during the actual interviews.
An interview was also conducted with the Recruitment Manager in order for her to indicate the implications from a financial, productivity, knowledge management and resource investment perspective after the loss of an employee. The three Human Resources Management Consultants were interviewed to look at the role that the conditions of employment played in determining employee turnover.
Observation analyses of documentary sources were conducted to identify common reasons and trends in turnover by counting the frequencies of words and phrases that are related to reasons for turnover.
Data was collected through one-on-one interviews including a minimum of fifteen previous employees who could be successfully traced and through the studying of documentary sources. Fifteen interviews with respondents from the side of the employer were also conducted.
A summary sheet was used by the researcher to consolidate the information gathered from the managers and company documents and a report was findings developed.
1.6 LIMITATIONS OF THE RESEARCH
The topic of employee turnover in the wastewater industry had not been explored sufficiently to lay a foundation for this research and that is why the literature search had to rely largely on research involving other occupations and fields.
1.7 TIME FRAME
The study focused on employee turnover from the year 2011 to the end of 2012. The study was conducted over a three-month period as indicated in Table 1.1:
Table 1.1: Time frame for conducting the study
CHAPTER THEMES DURATION
1 Refer to 1.1 to 1.8 Completed
2 Complete literature review Six weeks
3 Legislative and policy framework Two weeks
4 Presentation and discussion of findings Two weeks 5
Interpretation of results Conclusion of the study
Recommendations
Three weeks
1.8 CHAPTER SUMMARY
The chapter introduced the East Rand Water, the type of organisation that it is, the employee profile and its function of water purification. The rationale of the research was revealed as the notable trend of the resignations of key personnel.
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The chapter identified the research problem as the high turnover of young Plant Managers with ERWAT. The objectives the research aimed to achieve were to identify the common and unique reasons for employee turnover; to report on the effects of the turnover phenomenon; to review the organisation’s employee retention strategies and to recommend mechanisms for the reduction of turnover. The designs to act as the blueprint of the research were identified in the chapter as the case study, content and secondary data analyses. Interviews; qualitative and quantitative methods were identified as tools that the research would utilise in data gathering and analysis. Lastly, the time frame for the research is outlined.
CHAPTER 2: LITERATURE REVIEW
2.1 INTRODUCTION
This chapter examines the causes of employee turnover from the early nineteen hundreds to the late nineteen hundreds. Further coverage of employee turnover
concepts and definitions that take into consideration different perspectives on how turnover is viewed by different audiences are also discussed. Classification of turnover and the subordinate types of voluntary turnover are discussed to deepen the insight into the research topic.
Three turnover models designed to help scholars understand the influence the brain, society and economics play in an employee to trigger turnover are also highlighted. The psychological model is discussed in detail because the individual’s mental aspect plays a pivotal, if not the most critical role, in an individual’s decision-making process. Gintis (2007: 1) distinguished “the mind as a decision making organ” in humans.
A number of generic and wastewater-related reasons that trigger turnover are discussed, followed by five major negative effects of employee turnover. The last part of the chapter proposes mechanisms that could be employed to curtail employee departure.
2.2 HISTORICAL BACKGROUND OF EMPLOYEE TURNOVER
According to Al Sawafi (2012: 7), the employee turnover phenomenon is a human resources concept worldwide. He postulates coherently with Mobley, Horner and Hollingsworth’s (1978: 408) meta-analytical confirmatory test, that employee turnover had been researched as early as the early nineteen hundreds, but research at the time could not differentiate between voluntary and involuntary turnover. In spite of that, progress had been made before the fifties as terminology like unavoidable turnover were used at that time and is still in use until this day.
In the sixties there was a lull regarding turnover research according to Al Sawafi (2012: 21) because of the shortages in labour supply as a result of falling birth rates and the consequent labour deficiencies which meant there was not much turnover to be investigated. In sharp contrast, the nineteen seventies are characterised by a hive of research regarding employee turnover, with a number
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of turnover models being discussed. The reason for the surge in research, Al Sawafi (2012: 22) argues, was the development of technology that made communication and transportation of labour easy at the time.
In the eighties and nineties the understanding of turnover changed from focusing, for example, on the economic reasons behind the concept to the role played by labour market institutions (Al Sawafi, 2012: 21).
2.3 UNDERSTANDING EMPLOYEE TURNOVER
According to Hom, Mitchell, Lee and Griffeth (2012: 831), “everyone eventually leaves; no one stays with the organization forever”. This is true and implies that employee turnover is part of the employment space that is inevitable in any work environment, irrespective of how and when it happens.
Shaw, Delery, Jenkins and Gupta (1998: 511) cite two major categories of turnover, namely:
Involuntary turnover, and Voluntary turnover.
An instance of involuntary turnover, or discharge, according to Shaw et al. (1998: 511), reflects an employer’s decision to terminate the employment relationship. Shaw et al. (1998:511) view involuntary turnover as a result of retirement and death as uncontrollable. The controllable type, voluntary turnover, as this research will reveal, would be discussed and the uncontrollable would therefore not be a topic for discussion, as no intervention would prove successful in preventing it from happening.
2.3.1 Voluntary turnover defined
Voluntary employee turnover is the rotation of workers around the labour market; between firms, jobs and occupations; and between the states of employment and unemployment (Abassi & Hollman, 2000: 333).
Kirschenbaum and Mano-Negrin (1999: 1248), supported by Sun and Wang (2011: 27), Wright and Bonnet (1993: 149) and Shaw et al. (1998: 511) argue that voluntary turnover is an employee-initiated withdrawal or departure from an organisation. This is true as the word voluntary suggests that an employee deliberately chooses to leave.
A more pragmatic clarification of turnover by Mohr, Young and Burgess Jr. (2012: 222) describes the concept “as the number of employee departures over the last 12 months divided by the average number of annual employees”. WeiBo, Kaur and Zhi (2010: 4148) give a managerial perspective of what turnover is perceived to be in management circles and calls it the whole process associated with getting a vacant position filled each time a position is voluntarily vacated until the appointment and training of a new incumbent.
2.3.2 Classification of voluntary turnover
Allen, Bryant and Vardaman (2010: 51) mention two types of turnover in relation to control and the reasons for their occurrence as:
2.3.2.1 Turnover relating to control
Avoidable turnover
This type occurs because of reasons the employer may have a hand in influencing, like low job satisfaction, higher pay elsewhere and poor supervision (Allen et al., 2010: 51). The researcher agrees that an employer can put measures in place to avoid and manage voluntary turnover by ensuring employee job satisfaction. In addressing the above, the employer would allocate work that is satisfactory to employees, while providing proper supervision; coaching; mentoring; and giving better and competitive salaries to employees. Unavoidable turnover
This occurs for reasons that the organisation may have no influence or very little control over. An example is when someone separates from the organisation for a health condition that makes the person unable or fit to continue working (Allen et al., 2010: 51).
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This is true as serious sicknesses may prevent workers from being able to continue working productively and contributing to an organisation’s success.
2.3.2.2 Turnover relating to destination
De Croon, Sluiter, Blonk, Broersen and Frings-Dresen (2004: 442) distinguish two types of turnover relating to the destination of the departing employee. Inter-occupational voluntary turnover
This is described as a job movement to any job outside the industry and the occupational grouping.
Intra-occupational voluntary turnover
This type refers to job movement within the occupational grouping and industry.
The researcher supports both assertions as employees who leave jobs for other forms of employment have a specific destination that could either be within the industry they are employed in or could be changing job groupings and going to work outside the industry.
2.3.2.3 Turnover relating to functionality
Abelson and Baysinger (1984: 331) distinguish two forms of turnover related to functionality.
Functional voluntary turnover
This refers to separations that involve employees that the organisation would prefer to not keep anymore and losing such is internally looked at as no loss. Allen et al. (2010: 50) add to the explanation of what functional turnover is and posit that it is the departure of employees whose skills are easily replaceable. According to Allen et al. (2010: 50), it may even be beneficial in cases where poor performers leave but these authors in the same breath hasten to argue that functional voluntary turnover is also disruptive.
The dysfunctional turnover phenomenon is characterised by employees who have made a noteworthy contribution to the organisation through hard work and the loss of whom threatens the continued effectiveness of the organisation (Abelson & Baysinger, 1984: 331).
The loss of high performers would certainly affect an organisation’s functionality, as their input would be missed.
2.3.3 Turnover models
Mor Barak, Nissly and Levin (2001: 628) enumerate three domains on which employee turnover models are built and within which they should be understood.
Psychological domain and related models, Sociological domain and related models, and Economic domain and related models.
A psychological turnover model, an example of which is the unfolding theory conceptualised by Lee and Mitchell (1994: 62), will be discussed in detail to provide a better understanding of the mental complexities that lead to employees leaving an organisation.
2.3.3.1 The unfolding model
According to Lee, Mitchell, Wise and Fireman (1996: 6), the unfolding model comprises shocks to the system; the quantity of psychological analyses that pave the way for a decision to leave; and the actual act of leaving. The argumentation by Morrell and Arnold (2007: 1683) that departures are precipitated by abrupt events is consistent with the unfolding model’s assertion of shocks.
Lee and Mitchell (1994: 60) define a shock to the system “to be a very distinguishable event that jars employees toward deliberate judgements about their jobs and, perhaps, to voluntarily quit their job”.
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Lee and Mitchell (1994: 60) further add that a shock must be sufficiently jarring so that it cannot be ignored and that by its very nature creates information that must be interpreted and assimilated into an individual’s system of beliefs and images, because it has meaning about an employee’s job.
A shock does not necessarily have to surprise an employee, as it could manifest as an expected or unexpected event in an on-going social system that jars an employee from a steady state about the individual’s job (Lee & Mitchell, 1994: 61).
The shocking event needs the employee to pay attention and it does not necessarily bring negativity but whatever comes to the fore could be positive, neutral or negative (Lee & Mitchell, 1994: 61).
A frame of reference also called the decision frame is developed about the social and cognitive context that surrounds the experienced shock, and shortly after, the shock is given meaning through interpretation which could be a threat, anticipation, favourability or novelty (Lee & Mitchell, 1994: 61).
In the unfolding model, the second phase is personal, in that it determines whether the shock can be dealt with easily through a readily accessible and appropriate response, which could be informed by past actions the individual has had to take or previously known rules that were generated through the observation of others and personal knowledge that had been acquired in the past (Lee & Mitchell, 1994: 61).
The fact that, in the unfolding model of voluntary turnover, the shock that has been experienced together with the general and personal decision frames are the ones that trigger the beginning of a decision path (Lee & Mitchell, 1994: 61). Lee et al. (1996: 6) argue that there are four decision paths that present possible combinations of shocks or no shocks and the cognitive activities that follow, as shown in the Fortran- style flow diagram (Figure 2.1) that shows decision paths #1, #2 and #4.
Figure 2.1: Fortran-style flow diagram showing the unfolding model (Lee and Mitchell: 1994:62)
An example of how the model works is seen by only looking at decision path #1 in the diagram. A shock occurs to the system (a), an employee relates to the event and interprets it (b), and (c), the employee looks to a reaction utilised to
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respond to a similar situation in the past and draws on his frame of reference or images, finds that the reference matches (d) the script of what may have been learnt before; and the employee’s behaviour that is scripted on his mind in a similar situation is to leave (e). If the past learning experience does not match the mental script, the employee would remain with the organisation (f).
2.3.3.2 The motivational model
According to Scott and Calhoun, as cited in Sieh (2012: 1348), sociology deals with the macro-social structure, analysis of organisational systems and social classes and dimensions around which societies are built on. The motivational model is one example of sociological theories which, according to Mor Barak et al. (2001: 628), looks into human social behaviour. The theory, as illustrated in Figure 2.2, posits that good employee job design or task characteristics, and feelings of competence derived from positive verbal feedback from supervisors which increase the feelings of competence and feelings of relatedness borne by understanding between colleagues, positively influence work motivation (Richer, Blanchard & Vallerand, 2002: 2089). Work motivation breeds work satisfaction and helps in reducing emotional exhaustion that could potentially be brought on by conflict among organisational colleagues (Richer et al., 2002: 2093). If emotional exhaustion occurs, it could lead to turnover intentions and, ultimately, to turnover (Richer et al., 2002: 2090). On the other hand, work satisfaction would lessen the impact of turnover intentions and turnover.
+ ‐ + + Task Characteristics Feelings of Competence Work Motivation Emotional Exhaustion Turnover Intentions
+ +
+ ‐
+ +
Figure 2.2: Motivational model of turnover (Blanchard et al., 2002: 2091)
2.3.3.3 The economic model
This model posits that in the eyes of the economist “the employee’s decision about leaving or staying is the result of a rational cost-benefit assessment” (Mueller & Price, 1990: 322). According to Mueller and colleague if the benefits to costs ratio of remaining with the organization overshadow the same ratio in another workplace, the employee will not separate from his or her organization.
2.4 GENERIC REASONS FOR EMPLOYEE TURNOVER
In a review of the literature on employee turnover, Ongori (2007: 049) argues that “there is no standard reason why people leave organisations”. Therefore, an assortment of reasons why employee turnover exists and attribution of turnover cannot be placed on one locus. This is confirmed by Shaw et al. (1998: 511) who argue that the reasons that cause employees to leave employment are likely to be quite different.
While Ongori (2007: 049) posits an assortment of reasons as to why employees leave, Mitchell, Holtom, Lee, Sablynski and Erez (2001: 1102) argue that researchers have only been able to provide partial answers as to why people leave organisations.
Mor Barak et al. (2001: 629) support the existence of reasons and further assert
that any turnover reason in the workplace can be located within the three categories discussed below:
Feelings of Relatedness
Work Satisfaction
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2.4.1 Demographic factors
According to Mor Barak et al. (2001: 629), the nature of demographic factors could be personal or work related. A number of demographic factors that cause employees to leave are highlighted below as a host of researchers have discussed this in various papers.
2.4.1.1 Personal reasons
Cited by Monte (2012: 1719), Cabrita and Helosia argue that “younger people are more likely to change jobs”. The reason for that, Monte (2012: 1719) argues, is “because younger people face lower mobility-costs than older employees, allowing them to search more easily for jobs that satisfy them”. This means the ease of movement in young employees is a cause of turnover.
This is supported by the researcher in that younger employees, when leaving jobs do not have to incur costs as their older counterparts who, for instance, have to relocate with their entire families and in the process end up expending a lot of finance in relocation. Younger employees, therefore, do not have complex issues when relocating, for instance children who might still be at school and relocating in the middle of the school year could mean a disruption in their schooling.
Another demographic factor that fits both personal and work-related reasons to turnover is what Sun and Wang (2011: 35) refer to as the current trend of careers that are not confined by the existence of boundaries among the younger generation and that the pattern is also characterised by ‘job hopping’.
This should be understood to mean that ease of movement of younger employees referred to by Sun and Wang (2011: 27), which is personal in nature, further exacerbates the reasons for turnover as it brings about the need in young employees to work outside their countries’ borders. The nature of the jobs that are not limited by borders is a work-related factor.
Boyas, Wind and Kang (2012: 50), citing Whitebook, Phillips and Howes, put forward another demographic reason for turnover by arguing that “some researchers have maintained that younger workers are more likely to leave because they may have more job alternatives, whereas older workers may lack other opportunities”.
In Mor Barak et al. (2001: 630), Kiyak and colleagues argue that it is a known fact that better educated and younger employees that are less trained by and large are more likely to leave, compared to their older and less educated colleagues.
It is clear from the statement above that employers are willing to risk and hire younger and educated employees and that raises the frequency of young employees leaving jobs.
According to Boyas et al. (2012: 50), the lack of coping skills to deal with stress in young workers within the workplace is another reason that causes turnover. Hom et al. (2012: 833) identify personal family factors as other reasons for turnover, arguing that many departures are induced by family.
One such example of personal and family pull factors that cause departure, according to Boyar, Valk, Maertz Jr. and Sinha (2011: 10), is “the pull of family normative financial obligations and the relative absence of such obligations on one’s salient turnover reasons”.
This is supported by the researcher as it is an accepted standard in some communities that the man of the house should provide for his family. The norms could prescribe that a married woman should not be economically active and female employees who enter into matrimonial unions could be compelled to relinquish their jobs if they had been working before marriage.
Boyar et al. (2011: 10) add that this could be true in countries high in collectivism where normative pressures exist and an employee could be required to prioritise family wishes and to take decisions consistent with the expectations of a family.
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Hom et al. (2012: 833) add to the family discourse by positing that another factor that causes turnover is the pressure from spouses who put their partners under pressure to either relocate to a new environment or look after the family’s children. Hom et al. (2012: 833) refer to this type of ‘quitter’ as a pre-planned leaver.
Adding to personal reasons for turnover is the argumentation presented by Muteswa and Ortlepp (2011: 14) who cite a lack of intrinsic rewards, and work-life balance as another reason for employee turnover.
An intrinsic reward is derived from the self, argues Reiss (2012: 152), and he that it concerns doing something for its own sake. Reiss (2012: 152) provides an example of a child who is intrinsically motivated who “plays baseball for no reason other than because that is what he wants to do”. Therefore, intrinsic rewards result in employees being self-motivated in executing their duties, and a lack of such rewards could result in a lack of motivation and subsequently turnover.
Organisations that operate in a way that drains self-motivation from employees make it impossible for employees to strike a balance between their social and work life are more likely to lose their employees to voluntary turnover.
2.4.1.2 Work-related reasons
Monte (2012: 1722), supported by De Croon et al. (2004: 442), posits that stressful work results in psychological strain which causes employees to show behavioural reactions that lead to turnover.
Ongori (2007: 050), linking his reasoning to the stress discourse, fingers role stressors as other reasons that lead to employee turnover. Examples of role stressors are clarified by Ongori (2007: 050) as role ambiguity and role clarity, the former being the difference between what an employee thinks his or her job entails and what others expect the employee to be doing in executing his or her job properly.
Such a situation, according to Ongori (2007: 050), results in uncertainty on the side of the employee as to what exactly he or she should be doing in the light of other employees’ perspectives and the employee’s own perceptions about their job. Role clarity for each employee, argues Ongori (2007: 050), needs to be spelt out by management and supervisors to avoid role ambiguity, because if the roles employees need to play are not clearly defined, employees would not know what is expected of them and would leave because of the frustration that comes with a lack of clarity.
Wright and Cropanzano (1998: 486) argue that another reason that leads to turnover are job demands that lead to fatigue and emotional exhaustion. According to Wright and Cropanzano (1998: 492), the job demands lead to employees exhibiting diminished job performance and eventually leaving their jobs.
It is obvious that employees may decide to leave the jobs that cause them strain and fatigue when they suffer from stress and exhaustion.
According to Michaels and Spector (1982: 54), another work-related factor that leads to turnover, results when an employee discovers that a job is not what he or she believed it would be.Maertz, in Griffeth and Hom (2004: 109), add that “people want to continue doing things that make them feel good”. This is true as an employee at times would think the job entails challenging work and at a later stage learn that it is not as interesting as they thought it would be when it captured their attention.
A study by Boyar et al. (2011: 12) adds several other work-related reasons like:
Job content,
Relationship with colleagues, Managerial support,
Griffeth, Hom and Gaertner (2000: 483) corroborate the position of Boyar et al. (2011: 12) by mentioning three of the above determinants, arguing that characteristics of the work environment such as job content; work group
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cohesion; leadership do cause turnover and the authors add lack of autonomy and promotional chances as other causes.
The argumentation on autonomy is supported by Aarons et al. (2010: 277) and Heavey, Holwerda and Hausknecht (2013: 413) who agree that decreasing job autonomy by implementing an inflexible organisational work structure increases the chances of employee turnover. Identifying another reason for turnover, Maltarich, Nyberg and Reilly (2010: 1058) found out that “employees will leave jobs where there is a mismatch between their cognitive ability and the cognitive demands of the job”.
Maltarich et al. (2010: 1058) further argue existence of pull and push factors that cause voluntary employee turnover. Maltarich et al. (2010: 1060) posit that “we expect pull forces to apply more strongly to workers whose cognitive ability exceeds the cognitive demands of their job”. They (2010: 1060) further explain the previous statement by adding that “high cognitive ability employees will more likely leave jobs with low rather than medium cognitive demands”. Maltarich et al. (2010: 1060) add that “those with abilities greater than those required for the job may feel bored, and the job may not hold their interest”.
This should be understood to suggest that, if the employee’s expertise is above the requirements of his current position, there is a strong likelihood that the employee may leave the job and look for an alternative that would meet his higher level of proficiency. On the other side of the coin, the statement also means if an employee is employed to perform a job above his capabilities that employee might leave because he or she cannot meet the higher demands of the job at hand.
Regarding the push factors referred to above, this could manifest when an employee is not performing well and the organisation pushes such an employee out by withholding positive rewards and providing negative feedback (Maltarich et al., 2010: 1060). The negative feedback could be received by an employee performing below expectations during performance reviews that are used to appraise employee performance, which ultimately culminate in the awarding of incentives in the form of bonus payments by the employer. When such an employee does not receive rewards he may feel disowned and ostracized within
the organisation, which could lead to further demotivation and the decision to leave voluntarily.
To validate the point around push factors, Wright and Bonnet (1993: 151) argue that poor performers engage in alternative searches because of the feelings of being unwanted by the organisation. Such job searches result in offers and the acceptance of such offers by the applicant, and that leads to turnover.
Arguments consistent with those of Maltarich et al. (2010: 1060) argued by Chatman, in Mitchell et al. (2001: 1104), posit that “when organizational entry produced poor person-organization fit, employees were likely to leave an organization”.
The argument by Wright and Bonnet (1993: 150) about the Person-Environment (P-E) Fit Theory suggests that “an incongruent relationship between individual and organizational demands leads initially to job stress, as found by Monte (2012: 1722) and (De Croon et al., 2004: 442). Subsequently, Wright and Bonnet (1993: 150) argue, it leads to potentially maladaptive outcomes such as job dissatisfaction, decreases in work performance, and increases in absenteeism and turnover”.
Regarding personal employee perceptions about the work situation, managerial support and turnover, Nishii and Mayer (2009: 1421) posit that,
…if a follower perceives that his manager has chosen to focus her energy on other, more needy followers, the effect of having a low-quality relationship with his manager may be less damaging to him than if he were to perceive that his manager had opted not to develop a high-quality relationship with him because she did not value him, his background or his personality.
Nishii and Mayer (2009: 1421) argue that that the perception of the employee about the unpleasant work situation would result in the employee’s morale being lowered; diminishing self-worth, feelings of rejection, and withdrawal from work and colleagues, all of which could result in employee turnover.
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Mor Barak et al. (2001: 629) argue that professional perceptions include job satisfaction and organisational commitment. Spector, in Monte (2012: 1719), postulates that satisfaction is “how people feel about their jobs and different aspects related to them”.
An addition by Spector in Monte (2012: 1718), postulates that “in general, previous studies have shown a direct relationship between job satisfaction and turnover”. Griffeth et al. (2000: 483) argue in agreement with Spector, positing that a resolution to depart is triggered by job dissatisfaction.
Sun and Wang (2011: 28), in support of Allen, Weeks and Moffit (2005: 980), further add that dissatisfaction with one’s current job may result in an employee searching for a more satisfying occupation. Mitchell et al. (2001: 1102) confirm the argument around job dissatisfaction by arguing that “more specifically, given alternatives, people stay if they are satisfied with their jobs and [are] committed to their organizations and leave if they aren’t”.
Professional perceptions leading to turnover also speak to the notion of a lack of organisational commitment by employees, as argued by Mitchell (2001: 1102). Bentein, Vandenberg, Vandenberghe and Stinglhamber (2005: 469) differentiate between the following three (3) forms of commitment that, if lacking in employees, could lead to turnover:
2.4.2.1 Affective commitment (AC)
This form of commitment represents the notion that the employee’s commitment to the institution is determined simply by personal identification with and an emotional attachment to the organisation. According to Bentein et al. (2005: 469), in the affective commitment scenario the employee’s mentality is characterised by a personal longing to pursue a particular course of action, which is to stay within the organisation.
Mitchell et al. (2001: 1106) add that “affective commitment reflects one’s liking for a job and emotional attachment to an organization”. Mitchell and colleagues argue that employees remain with the employer because they have positive
affect and feelings about the organisation. In the absence of affective commitment, employees would quit.
2.4.2.2 Normative commitment (NC)
In the case of normative commitment, according to Mitchell et al. (2001: 1106), an employee feels or has a perception that suggests that he or she has a moral obligation to follow a particular course of action and that would be to remain with the organisation. Mitchell et al. (2001: 1106) posit that, with normative commitment, employees stay because they feel they ought to. Where employees do not feel that they ought to be with the organisation, voluntary turnover would be the result.
2.4.2.3 Continuance commitment (CC)
Mitchell et al. (2001: 1106) argue that continuance commitment reflects an attachment based on the likely benefits the employee perceives he or she would give up if he/she does not continue working for the institution. If an employee feels that he/she will not have an income if he/she chooses to terminate employment with the organisation the employee would most probably continue with the organisation, hence the usage of the term continuance. If there are no benefits to lose or benefits could be replaced, an employee would leave.
The above three forms of attachment are strands that constitute organisational commitment. Bentein et al. (2005: 468) explain that the commitment to the organisation is nurtured through the strengthening of psychological links that culminate in the commitment of the employee to the organisation. Bentein and colleagues further state that the links could either be weakened in the exchanges between the employee and the employer.
As the links are weakened, say Bentein et al. (2005: 468), the chances of becoming less committed and engaging in the process of turnover are heightened.
27 2.4.3 Organisational Conditions
Organisational conditions include fairness with regard to compensation and the culture of the organisation (Mor Barak et al., 2001: 630).
2.4.3.1 Fairness
Fairness is also referred to as distributive justice by Mor Barak et al. (2001: 629), who postulate that perceived inequity in the workplace generates feelings of resentment amongst employees and also between the managing team and employees. An example is a situation where there are disparities in the wages of employees in the same category. Resulting bitterness amongst employees could negatively affect employee relations and spread throughout the entire environment, creating to an unpleasant workplace. The perceived inequity could, according to Mor Barak et al. (2001: 629) result in higher rates of absenteeism, poor commitment to the organization and amplified turnover intentions which could later lead to actual quits.
2.4.3.2 Compensation and failure to meet expectations
Another dimension presented by Aarons et al. (2009: 271) indicates that turnover attribution in the public sector has been blamed on organisational elements such as low salaries. Messersmith, Guthrie, Ji and Lee (2011: 457) specify that the motivation to leave because of pay could be linked to certain organisational pay characteristics, of which low salaries could be one.
Wright and Bonnet (1993: 151) add that high turnover of high performers is results from an organisation’s failure to meet their expectations of higher incentives that match their output. Mano-Negrin and Tzafrir (2004: 455) argue that, if employees perceive the salary each one of them gets as not proportionate to the work effort they put in, this can lead to employee attrition. Allen et al. (2010: 52) argue that ‘it is true that compensation matters for retention, and employees often leave the organization to take higher paying job elsewhere”.
Coming to organisational trends, Shaw et al. (1998: 512) posit that “in an organization with high quit rates, for various reasons employees find it more attractive to leave than to stay”. The statement should be construed to mean that employees observe the trend of departure and will, at times, do the same, even if there is no tangible reason to leave, presumably feeling that other employees would never leave for no apparent reason.
2.4.3.4 Competition
Muteswa and Ortlepp (2011: 13), in support of Samuel and Chipunza (2009: 410) found that competition for skills among South African organisations, international and multinational organisations looking for talented employees, brings about employee turnover.
As a result of the standardisation and adoption of world best practices by South Africa in different fields, it becomes easy for employees to fit into any working system and overseas countries then scout for talent in the country, offering salaries and incentives in foreign and stronger currencies that are beyond the reach of the local market, thereby resulting in high employee turnover in workplaces (Muteswa & Ortlepp, 2011: 13).
Linked to this competition, Smith, in Allen et al. (2010: 48) adds that “aggressive recruitment of valuable employees still occurs”. The contribution by Samuel and Chipunza (2009: 410) validates the aggression in recruitment, arguing that “today’s business environment has become very competitive thus making skilled employees the major differentiating factor for most organisations”.
It is clear that poaching of skilled workers by an organisation’s competitors is still rife in the marketplace and the competition for skills to enhance competitive advantage is an everyday phenomenon, with highly skilled employees being lured away from their employers with offers of high pay and benefits. Competition and poaching of staff amongst organisations thus contribute to turnover.
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The use in organisations of a commission-based pay system and short-term performance pressures were identified by Batt and Colvin (2011: 710) as reasons for employees to leave. In such employees are pressured to perform to earn more and when they cannot reach the set targets they earn less and may decide to leave because of the high pressure and the reward system.
2.4.3.6 Leadership style and team dynamics
DuBrin (2010: 112) describes leadership style as “the relatively consistent pattern of behaviour that characterizes a leader”.
Regarding leadership within organisations, Batt and Colvin (2011: 698) argue that institutions with a leadership style that exercises strict performance monitoring, places higher expectations on employees and provides more onerous working conditions, are likely to lose their employees. Batt and Colvin (2011: 698-699) identify the reason for the higher departure rates as that employees view persistent electronic monitoring of their work progress as an invasion of their private space and an indication of distrust by the employer. This is supported by Aarons et al. (2010: 277) and Heavey, Holwerda and Hausknecht (2013: 413), who argue that direct observation of employees leads to turnover and poor staff retention.
Mor Barak et al. (2001: 632), supported by Aarons et al. (2009: 271),assert that workers who remain with the organisation confirm that they are supervised by managers who listen when they report work-related problems and who are able to provide support when things become tough in the workplace. From what Mor Barak et al. (2001: 632) argue, it can be learnt that employees who are poorly supervised and poorly supported eventually will leave.
Linking leadership and team dynamics, Muteswa and Ortlepp (2011: 14) attribute the reason for employee turnover to “due to the existence of a poor relationship between the employee and his / her immediate manager”. The poor nature of the relationship results in the departure of the employee. Garner and Hunter (2013: 197) intimate the importance of supervisor and co-worker support and that a lack thereof causes employees to leave.
